Chicago's quest to provide more affordable housing took a significant leap forward with the announcement of the 2023 Low-income Housing Tax Credit (LIHTC) awardees. As confirmed by the city's Department of Housing, Mayor Brandon Johnson and his administration chose 13 developments for federal tax credit financing, these projects are expected to enhance living conditions for low-income residents across various neighborhoods.
Breaking ground on these developments fulfills Mayor Johnson's commitment to ensuring accessible and reasonably priced housing for all Chicagoans. The LIHTC initiative, a vital federal tool for fostering the construction of affordable rental housing, acts as a conduit for investors to funnel capital into these ventures, thereby reaping tax benefits over an extended period of time. The mayor underscored the gravity of the situation, "Ensuring every Chicagoan has access to safe, affordable housing is non-negotiable in our mission for a better, stronger, safer Chicago," he said in a statement.
The 2023 QAP, which governs the LIHTC applications within Chicago and is revised every two years, saw key reforms. It now includes alongside, an increased support for Permanent Supportive Housing (PSH), a requirement for 5% of units in all other developments to be dedicated to PSH. The plan also features incentives for transit use, a blueprint for bolstering broadband connectivity, and measures aligning with the City’s Climate Action Plan to promote energy efficiency and decarbonization efforts.
Amongst the selected are Mercy Housing Lakefront's Belray Apartments, Bickerdike Redevelopment Corporation's proposal on N Broadway, and The Interfaith Housing Development Corporation of Chicago's Janet L. Smith Apartments dedicated to PSH. Totaling a combined development cost of $562 million including both public and private investments, the financial backing from LIHTC is a considerable push. Housing Commissioner Lissette Castañeda remarked on the project's significance, "We are proud to announce these thirteen transformative projects," she highlighted the anticipation towards fostering greener, community-driven neighborhoods.
Community engagement played a pivotal role in shaping the QAP through dialogues with residents, activists, and aspiring BIPOC developers. Now with the projects having been unveiled, they will move into a meticulous process involving underwriting, architectural reviews, zoning approvals, and City Council endorsements. As part of the comprehensive process, loan arrangements and other formalities are projected to conclude within an 18 to 36-month timeline.
Deputy Mayor Kenya Merritt praised the initiative's comprehensive approach, stating that the strategy "prioritizes the diverse needs of our communities." The administration is looking forward to continuing its efforts, with the explicit intent to streamline housing approvals to materialize equitable, community-directed development. Thus, ensuring that every nook of Chicago bears the hallmark of a safer, more affordable home for its residents.
